Overnight Moves
The markets reflected risk-off caution with the ZAR strengthening while the USD pulls back. Precious metals dipped, with Gold ending relatively flat, Silver down 1.7%, Palladium up 1.6%, and Copper up 1.4%. The VIX rose 5.1% which signals volatility, and Tencent is up marginally by 0.2% which reflects broader China tech resilience. Overall, today should be quiet for the most part with the US market closed for President’s Day.
S&P500 Index
We saw the S&P500 futures show resilience last week, managing to bounce from our lowest support level, 6,810, during Friday’s risk-off sentiment, but failed to retest the 7,000 resistance level. We expect action today to be between 6,880 and 6,930. If we break above 6,930, then we could reach 6,950, but if we see downward movement, then we could retest 6,810.
Aspen Pharamacare (APN)
Aspen Pharmacare will probably be one of the most looked at stocks today, managing to push above R126 on Friday, ahead of earnings, which will be released on the 3rd of March. This spike is likely due to the momentum from vaccine/anaesthetic restocking and nutraceutical growth, and also follows an interim earnings trading statement made last week. We will see if R130 is obtainable once the market opens and if volume sustains. A break below R124 could signal caution going into earnings. This is definitely one to watch today.
Bitcoin (BTC)
Bitcoin has once again pulled back from last week, where we saw a bit of green on the chart, but momentum did not hold during liquidation cascades. We currently stand at around $68,000 this morning after the weekend’s volatility. Our levels are at 71,600, with 65,000 to the downside and 60,000 being our lowest if we manage to continue the downward trend.
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